The Convention on the OECD was signed in Paris on 14 December 1960 when the Organisation for European Economic Co-operation (OEEC), formed in 1948 to administer aid under the Marshall Plan for the reconstruction of Europe after World War II, was reconstituted as the Organisation for Economic Co-operation and Development, "in order to strengthen the tradition of co-operation and apply it to new tasks and broader objectives".
The Convention came into force on 30 September 1961.
The Convention is complemented by:
Thirty eight countries are now party to the Convention, the twenty "founder" Members and a further eighteen who have subsequently become Members.
Some countries have made "Declarations" concerning principally the territorial application of the OECD Convention.
More information on the Crown Dependencies and Overseas Territories of the United Kingdom
Text of the Convention on the Organisation for Economic Co-operation and Development
The aims of the Organisation for Economic Co-operation and Development (hereinafter called the "Organisation") shall be to promote policies designed:
(a) to achieve the highest sustainable economic growth and employment and a rising standard of living in Member countries, while maintaining financial stability, and thus to contribute to the development of the world economy;
(b) to contribute to sound economic expansion in Member as well as non-member countries in the process of economic development; and
(c) to contribute to the expansion of world trade on a multilateral, non-discriminatory basis in accordance with international obligations.
(a) promote the efficient use of their economic resources;
(b) in the scientific and technological field, promote the development of their resources, encourage research and promote vocational training;
(c) pursue policies designed to achieve economic growth and internal and external financial stability and to avoid developments which might endanger their economies or those of other countries;
(d) pursue their efforts to reduce or abolish obstacles to the exchange of goods and services and current payments and maintain and extend the liberalisation of capital movements; and
(e) contribute to the economic development of both Member and non-member countries in the process of economic development by appropriate means and, in particular, by the flow of capital to those countries, having regard to the importance to their economies of receiving technical assistance and of securing expanding export markets.
With a view to achieving the aims set out in Article 1 and to fulfilling the undertakings contained in Article 2, the Members agree that they will:
(a) keep each other informed and furnish the Organisation with the information necessary for the accomplishment of its tasks;
(b) consult together on a continuing basis, carry out studies and participate in agreed projects; and
(c) co-operate closely and where appropriate take co-ordinated action.
The Contracting Parties to this Convention shall be Members of the Organisation.
In order to achieve its aims, the Organisation may:
(a) take decisions which, except as otherwise provided, shall be binding on all the Members;
(b) make recommendations to Members; and
(c) enter into agreements with Members, non-member States and international organisations.
1 . Unless the Organisation otherwise agrees unanimously for special cases, decisions shall be taken and recommendations shall be made by mutual agreement of all the Members.
2. Each Member shall have one vote. If a Member abstains from voting on a decision or recommendation, such abstention shall not invalidate the decision or recommendation, which shall be applicable to the other Members but not to the abstaining Member.
3. No decision shall be binding on any Member until it has complied with the requirements of its own constitutional procedures. The other Members may agree that such a decision shall apply provisionally to them.
A Council composed of all the Members shall be the body from which all acts of the Organisation derive. The Council may meet in sessions of Ministers or of Permanent Representatives.
The Council shall designate each year a Chairman, who shall preside at its ministerial sessions, and two Vice-Chairmen. The Chairman may be designated to serve one additional consecutive term.
The Council may establish an Executive Committee and such subsidiary bodies as may be required for the achievement of the aims of the Organisation.
1. A Secretary-General responsible to the Council shall be appointed by the Council for a term of five years. He shall be assisted by one or more Deputy Secretaries-General or Assistant Secretaries-General appointed by the Council on the recommendation of the Secretary-General.
2. The Secretary-General shall serve as Chairman of the Council meeting at sessions of Permanent Representatives. He shall assist the Council in all appropriate ways and may submit proposals to the Council or to any other body of the Organisation.
1. The Secretary-General shall appoint such staff as the Organisation may require in accordance with plans of organisation approved by the Council. Staff regulations shall be subject to approval by the Council.
2. Having regard to the international character of the Organisation, the Secretary-General, the Deputy or Assistant Secretaries-General and the staff shall neither seek nor receive instructions from any of the Members or from any Government or authority external to the Organisation.
Upon such terms and conditions as the Council may determine, the Organisation may:
(a) address communications to non-member States or organisations;
(b) establish and maintain relations with non-member States or organisations; and
(c) invite non-member Governments or organisations to participate in activities of the Organisation.
Representation in the Organisation of the European Communities established by the Treaties of Paris and Rome of 18th April, 1951, and 25th March, 1957, shall be as defined in Supplementary Protocol No. 1 to this Convention.
1 . This Convention shall be ratified or accepted by the Signatories in accordance with their respective constitutional requirements.
2. Instruments of ratification or acceptance shall be deposited with the Government of the French Republic, hereby designated as depositary Government.
3. This Convention shall come into force:
a) before 30th September, 1961, upon the deposit of instruments of ratification or acceptance by all the Signatories; or
(b) on 30th September, 1961, if by that date fifteen Signatories or more have deposited such instruments as regards those Signatories; and thereafter as regards any other Signatory upon the deposit of its instrument of ratification or acceptance;
(c) after 30th September, 1961, but not later than two years from the signature of this Convention, upon the deposit of such instruments by fifteen Signatories, as regards those Signatories; and thereafter as regards any other Signatory upon the deposit of its instrument of ratification or acceptance.
4. Any Signatory which has not deposited its instrument of ratification or acceptance when the Convention comes into force may take part in the activities of the Organisation upon conditions to be determined by agreement between the Organisation and such Signatory.
When this Convention comes into force the reconstitution of the Organisation for European Economic Co-operation shall take effect, and its aims, organs, powers and name shall thereupon be as provided herein. The legal personality possessed by the Organisation for European Economic Co-operation shall continue in the Organisation, but decisions, recommendations and resolutions of the Organisation for European Economic Co-operation shall require approval of the Council to be effective after the coming into force of this Convention.
The Council may decide to invite any Government prepared to assume the obligations of membership to accede to this Convention. Such decisions shall be unanimous, provided that for any particular case the Council may unanimously decide to permit abstention, in which case, notwithstanding the provisions of Article 6, the decision shall be applicable to all the Members. Accession shall take effect upon the deposit of an instrument of accession with the depositary Government.
Any Contracting Party may terminate the application of this Convention to itself by giving twelve months' notice to that effect to the depositary Government.
The Headquarters of the Organisation shall be in Paris, unless the Council agrees otherwise.
The legal capacity of the Organisation and the privileges, exemptions, and immunities of the Organisation, its officials and representatives to it of the Members shall be as provided in Supplementary Protocol No. 2 to this Convention.
1. Each year, in accordance with Financial Regulations adopted by the Council, the Secretary-General shall present to the Council for approval an annual budget, accounts, and such subsidiary budgets as the Council shall request.
2. General expenses of the Organisation, as agreed by the Council, shall be apportioned in accordance with a scale to be decided upon by the Council. Other expenditure shall be financed on such basis as the Council may decide.
Upon the receipt of any instrument of ratification, acceptance or accession, or of any notice of termination, the depositary Government shall give notice thereof to all the Contracting Parties and to the Secretary-General of the Organisation.